Councilors frown upon power rate hike plan

THE City Council gave sour comments Tuesday on the report it received from Davao City Light and Company (DLPC) regarding the latter's rate increase.

Councilors admitted they did not understand the report from DLPC representatives. The report was presented during a closed-door executive session.

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Councilor Pilar Braga, who chairs the City Council committee on energy, transportation, and communication, clarified that DLPC demonstrated facts and figures "but was difficult for (them) to understand."

"We're asking again DLPC to make a presentation regarding (what is their planned new) power rates and to make the presentation in lay man's language," Braga said.

Braga on January 26 first disclosed that DLPC has plans for a rate increase, thus promoted her to summon the power firm to explain the reason for the rate increase to the council.

"We are not against power rate increase per se of DLPC. We just want to be assured that the increase is reasonable and justifiable and that the public in general understands the reason for the increase," Braga said.

Braga added that other than the DLPC, the council also summons a representative from the Energy Regulatory Commission (ERC) to appear on next week's session.

Floor Leader Danilo Dayanghirang said he also requested DLPC to submit records to the council on the matter.

"The report was confusing for us. Also it shouldn't have been done in a closed-door meeting because it's against our principle; there should be transparency," Dayanghirang said.

DLPC last year applied for the approval of annual revenue requirement and performance incentive, otherwise known as the Performance-Based Regulation of the Energy Regulatory Commission (ERC) under ERC case 2009-041 RC.

Braga said she reckons the application nears implementations as it has undergone public consultation at University of Mindanao January 22.

The application was made last June 15, 2009, while the jurisdictional and expository hearings were conducted on July 21, 2009. The evidentiary hearing, on the other hand, was held August 6, 2009, and the draft determination on November 25, 2009. (JCZ)